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Japanese Government Bonds Are Crashing - Biggest Surge in Yields In 2 Years
Whether due to contagion from the surge in US Treasury yields or a double whammy of weak household spending and Retail Trade data indicating that Abenomics is an utter failure is unclear, but yields across the entire JGB complex are spiking by the most in over 2 years. 10Y yields are up almost 9bps (not much you say) except that is from 32bps to 41bps!! 2Y and 5Y JGB yields have roundtripped from last week's Fed-driven plunge. Is the BoJ/GPIF losing control of the largest and now most illiquid bond market in the world?
This is the biggest yield spike since the Taper Tantrum...
And stocks are spiking...
As the Nikkei has gained 4000 more points that the Dow in the last 6 months...
Chart: Bloomberg
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Gravity? After all Nature's Law will have to be obeyed....even by the Central Bankers......
The market is so illiquid someone probably sold 10 bonds and this yield spike occurred.
Talk about selective reporting - Nothing said of the Nikkei PLUS almost 300 points, 15 year highs and 2k points above Dow parity... Yawn !
Edit: Why the mark down? Did I not get my facts straight
This is ZeroHedge, if you want bullish cheerleading find it someplace else. It you want ANY bullish facts you need to learn to read between the lines.
"Risk will peak in June"= The market will get manipulated upward until June. That's how ZH reports bullish news.
This site will give you deeper insight to the negatives of the economy than any place else but you won't get the positives. Look elsewhere for those and come here to find the stuff they swept under the rug. Or if you want fair and balanced I hear Fox News promises that.
Fair and Balanced. Go along to get along. Don't make a mountain out of a mole hill. Quantative Easing. Green Shoots. It's a "V" recovery. The government is here to protect you. Fox News. Charlie Munger.
Those are negatives too.
ZeroHedge covers lots of positive news. Just do a site search for "Fed Manipulation."
Correct.
Most people in the West don't understand, that it's up to everyone himself to listen to both sides.
Because of the lie of "free press", people believe, that objective information was possible and if they consume their preferred TV or newspaper, they would be objectively informed.
BS!
There probably exists not a single judge on this planet, expecting that one party will tell him the truth.
AUDIATUR ET ALTERA PARS. And then let logic decide, which side has the better arguments.
The Romans knew it, but the sheeple in the West believe in "free media". Buy one newspaper, switch on the TV and believe to be objectively informed, because it's called FREE PRESS and censorship is only working with guns...
Only because of this completely brainwashed view someone can criticize ZH for reporting mostly "the other side". Yes, that's why it's so GREAT! Cheerleading news can be found everywhere else.
I am also always amused, when on RT.com the zombies are lamenting that RT was reporting the Russian view.
Dumb, dumber, western sheeple.
Yes, this site only gives you negatives. Even if they have to manufacture it. It is an editorical site.
Que the red arrows.....wait for it......now!
Disclosure: I am long Japanese equity
I just marked you up because your facts were not proven wrong by the downmarkers.
@DeadFred - I'm not after any bullish applause - Just some flipside to the Bond news and how equally ludicrous the move is. Thank you for your effort to explain. I know how the site operates, not sure about some of the readers...
JoJoJo, you're not included in that last comment - Thx for the thumbs up !
WTF difference does a vote make?
Often times excellent comments are met with downvotes. Other times, the posters are idiots.
In fact, I rarely vote. I just read and sometimes post.
Check your ego at the door and just deck some poor fool that didn't see your canon ball coming.
https://www.youtube.com/watch?v=3vjQ7CCrPIw
Regards,
Cooter
I had to mark you down Cooter - Your taste in music (IMHO) sucks !
Other than that you're okay
I upvoted Dear Fred but did not neutralize your/my upvote. See how it works?
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Gravity? After all Nature's Law will have to be obeyed....even by the Central Bankers......
you do not get it at all... really.... those finance systems do not obey to any known physical law on earth.
JADE HELM TYLER YOU SOMBITCHEZ!
Somebody open the cockpit door
wasn't it Archimedes who said with enough leverage he could move the world. Leverage, thy name is JGB.
Be careful. The usd/jpy looks like it might climb higher as the carry traders cover their bets.
The risk reward is looking tasty, in London.
The 50 h4 and the 200 h4 converge around 120.00
Don't they call this trade the "widowmaker"?
Regards,
Cooter
All Japan needs to do is dump the USSA and join China. Problem solved.
Oh boy.
Japan's history is NOT lost on pretty much everyone that is in their neighborhood.
Japan is going to get back what it dealt out in spades.
Regards,
Cooter
Sorry, the patient will die anyway.
treasury auctions aren't working out so well today.
Who in thier right mind would buy them shits?
People at the hot end of the flow who risk nothing in doing so.
No worries. The JCB will simply sell some of its stocks to cover the bond problem and spin it as 'portfolio rebalancing'. They can send condolences to Sony, Toshiba, etc. later. /s
No CB can NET sell anymore. All they can do is rebalance what they buy.
Book that.
Regards,
Cooter
Call me crazy but maybe that was the plan all along - free paper to buy more stuff and encourage leverage by others, cause illiquid markets, make more free paper and buy up everything single thing that isn't absolutely nailed down and then have your puppets pass a law that says even the nailed down stuff has to go too.
Let's try another way. Suppose you are a rope maker and a communist comes to you...
I was too busy buying ETFs to notice that the JGB market had gone critical.
Opps...
Warning to all cats: The BOJ is running out of dead cats to bounce.
Arrrr... This be one a the harbingers of the pocky clyps!
Fire up the helicopters and start the yen spray guns.
JGB Yield returns to same as two weeks ago.
News?
Exactly. Another article that doesn't distinguish noise from signal.
But it was a significant percentage move and depending on when one acquired securities could prove a significant gain/loss depending on position?
Regards,
Cooter
Significant percentage move in terms of yield, BUT NOT in the price of the securities. Therefore a big whopping 0.5 percent change in gain/loss.
Bullardish
S&P to the moon!
"surge in US Treasury yields" Will you please look at the treasury yield curve before you start posting nonsense.
Or are you calling the change in 6th month rates from 0.08 to as high as 0.13 percent a "surge"?
http://www.treasury.gov/resource-center/data-chart-center/interest-rates...
I get the charts, but how have the bonds been selling since Lehman?
More government interest? No problem. Just print more money to pay for it.